WSJ had an interesting article about how “chain-stores are holding bigger markdowns in reserve trying to gauge how long shoppers will wait for better deals to emerge.”

Some interesting statistics from the article, including how more shoppers this year are holding out shopping in hopes of better sales. Apparently “Nine of 10 people waiting to finish their holiday shopping are doing so to get discounts of at least 50%”.

What does this mean for shoppers and retailers? A walk around the mall will show you that there’s plenty of inventory out there waiting for shoppers, and so I am fairly confident shoppers will find plenty of deals around Christmas and in the New Year post-holiday sales.

Of course, there are some items in higher demand that might sell out early and will never go on sale, such as designer brands and of the moment must have items in the size you are looking for. However, if you are looking for generic top or sweater, be prepared for some good bargain hunting in a few weeks.

Halloween was just 10 days ago, but you wouldn’t know that based on all the sales right now in the stores. It feels like the week before Christmas to me!

Sears and KMart are have “Black Friday” sales every Friday until Christmas. Friends and family 25%-40% off sales are the norm, not the exception.

This is great for shoppers who want to beat the holiday rush, because you’ll get great savings and selection without having to fight the crazy crowds and last minute shoppers.

Keys to holiday shopping this year:

• Check for coupons and sales before you shop online or hit the malls
• Even if you forgot your coupons at the mall, just ask the cashier if there’s any discounts they can give you
• Check the outlets for some steals on summer/fall items (if you live in one of the warmer states, or don’t mind giving out of season items)
• Don’t wait until the last minute… that’s when you get frantic and spend too much for something no one really wants
  

Sales tax in my county is now 9.25%.That’s basically 10%!

Buying online from places without a brick and mortar store in California automatically saves me that much. Or I can wait until I visit my friends in NYC where clothing under $100 isn’t taxed. Oh yes, I do look for reasons to shop don’t I? But it just makes going to Loehmann’s in NYC that much more fun

I need to buy stuff for the house soon and now seriously tempted to purchase most of my window coverings, home stuff, and furnishings online just to get around the sales tax. That and there’s such a better selection online because online stores on confined by limited floor space.

I know the economic environment is scary right now, so much that even people with money are not spending as much because everyone seems to be in conservation mode.

But here I am proposing a new way to live… and it’ll help stretch your money in the long term.

Spend less money when economy is booming, and spend more when it’s hurting

When you are spending when economy is down like it is right now, you just get a lot more for the same dollar you are spending. Things are on sale at 50% off or more. I mean, you can get a Tag watch for 50% off or more in the LVMH friends and family sale right now! And it’s not just about luxury goods. I just got a 4-star hotel in the soho area of London for $100USD per night for an upcoming trip. But during economic boom, you would never find such good deals and might even have to pay a premium.

It’s all about supply and demand. When demand is high (during the boom), prices are high. When demand low (right now), prices are low. So doesn’t it make a lot of sense to buy low?

Spend money if you have it. Go travel, redecorate your house, buy that expensive watch or purse you’ve craved for so long. You are no only saving yourself money in the long term, but also helping the ailing economy out.

Since I am a crazy bargain shopper personally, and I also see a fair amount of deals, I put together a short list of tips on bargain hunting online and offline.

• Always check for coupons/discounts if you are shopping online, there are extra off or free shipping codes that can save you some good money
• Avoid the malls during the crazy big shopping days (Black Friday, etc) and go online! Online retailers have some amazing deals during those peak sale days (extra 20% off, free shipping, special deals)
• Go to the outlets! The high end retailers are suffering from this economy and all the high end goods are making their way to outlets. Check out Nordstrom Rack, Loehmann’s, Off 5th, Neiman Marcus Outlet, and the retailer specific outlets.
• Check out the clearance racks. Because they are FULL these days and offer some steep discounts. I was just at Target the other day, and all the clearance apparel were an extra 30% off! And half the items were already 50% off or more.
• Check out the high end department stores and designer stores, because they area actually having some good sales and the prices are sometimes surprisingly within reach when prices are 75% off

We’ve all been there, when we have one hour at the mall to find something before we need to leave with a thoughtful and tasteful present to someone we care about.

After walking around for about 40 minutes, we start getting desperate. Time is ticking! We have to leave with a present in 20 minutes or we will be over half an hour late to the party!

Since it’s someone whom we care enough to get a present for, we end up getting pressured into just throwing money at anything remotely appropriate. Will they use it? Who knows. Was it over-priced and more than I would typically spend? Probably.

The Solution: Buy early and store it away!

See something you like on sale? Buy it, and put it away! Unless you are buying something super personal, most gifts are semi-generic anyway. Buy those Christmas plates after Christmas, and give it the following year! Don’t get pressured into buying full-priced gift ever again.

This will save you lots of money, your return on investment on this buy low give high technique will be better than anything you’ll see in the stock market these days.

Buy it and Store it!

How do you turn a block of gold into a lump of coal? By buying gift cards to a retailer that goes bankrupt in a few months.

I just finally tossed the Sharper Image gift card in my wallet after realizing there is no hope of ever getting even a penny out of that.

It’s easy to pick up gift cards instead of picking up a gift, but it’s a risk to receive gift cards these days, as retailer bankruptcies are on the rise.

If you are thinking of buying a gift card, buy one for the local mall that your friends and family shop at. I guess even for gift cards these days, you need diversification in your portfolio!